Benchmarking global remittances           The future of money transfers Mobile banking & payments for emerging            ...
About BICS                                                                 22.4%                                          ...
Agenda                The market evolution on Mobile Money               Role of Mobile in Mobile Remittances             ...
The emergence of a newmarket            129 live mobile money deployments around the globe today,                         ...
The Remittance marketRemittance flows to emerging markets continues to be a story of growth                               ...
Inward Remittance flowinto AsiaIn Bio US$7060                                                2010   20115040302010 0Source...
Remittance outflowfrom AsiaIn Bio US$ 12 11 10  9                                                2010   2011  8  7  6  5  ...
The mobile remittancemarket             Over US$ 65 Bio in mobile transfers are anticipated in 2014               Over    ...
Are we ready for mobilebased payments   Mobile readiness index     1      Singapore                      45,5      18     ...
The complexities of the ecosystem   To move to a truly open ecosystem of tomorrow requires a coordinated                  ...
From competitionto cooperation                Moving from closed networks to interoperable ecosystems               Yester...
From bilateral tohub modelBilateral models in ecosystems with hundreds of players across differing                    indu...
Need for a HubStandardized integration, National/International connectivity                                               ...
Introducing • Global hubbing service enabling P2P cross-border transfers & airtime, from/to      various sources (mWallet,...
Beyond remittance      Domestic interoperability will drive user uptake and revenue growth                Larger          ...
The Qtel Remittanceservice                                Solving interoperability in practice                            ...
The open network effect     HomeSend’s current and anticipated coverage extends to over 24 countries                      ...
Conclusion• Take up micro-payments promising  in developed markets• For emerging markets remittances  are key• The market ...
Questions ?  Frédéric Schepens                  www.homesend.com  frederic.schepens@bics.com         www.bics.com  +32 475...
121010_Mobile Banking & Payments for Emerging Asia Summit 2012_Benchmarking global remittances The future of money transfers
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121010_Mobile Banking & Payments for Emerging Asia Summit 2012_Benchmarking global remittances The future of money transfers

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121010_Mobile Banking & Payments for Emerging Asia Summit 2012_Benchmarking global remittances The future of money transfers

  1. 1. Benchmarking global remittances The future of money transfers Mobile banking & payments for emerging Asia Summit 2012 Bali, Indonesia October 2012
  2. 2. About BICS 22.4% 57.6% 20% HQ in Brussels with offices in Bern, Dubai, Singapore and New York more than 700 customers incl. over 400 mobile data customers world leader in mobile data services top 4 voice carrier with over 27 bio minutes 1.6 bio euro revenues 400+ employeesbics confidential | September 2012
  3. 3. Agenda The market evolution on Mobile Money Role of Mobile in Mobile Remittances - An Asia Perspective Complexities worldwide Solving issues Creating a worldwide ecosystemslide 3 | BICS confidential | 12 October 2012
  4. 4. The emergence of a newmarket 129 live mobile money deployments around the globe today, with another 91 planned Buyster, Mobipay, Payforit, Paybox, Etc.. … ISIS GCash … Smart Padala Felica … MPesa Wizzit Source: GSMA Analysis …Mobile Payment in developed countries and developing countries – different storyslide 4 | BICS confidential | 12 October 2012
  5. 5. The Remittance marketRemittance flows to emerging markets continues to be a story of growth 2013 USD 404 billion 2010USD 325 billion Source: World Bankslide 5 | BICS confidential | 12 October 2012
  6. 6. Inward Remittance flowinto AsiaIn Bio US$7060 2010 20115040302010 0Source: World Bank Data 2012slide 6 | BICS confidential | 12 October 2012
  7. 7. Remittance outflowfrom AsiaIn Bio US$ 12 11 10 9 2010 2011 8 7 6 5 4 3 2 1 0Source: World Bank Data 2012slide 7 | BICS confidential | 12 October 2012
  8. 8. The mobile remittancemarket Over US$ 65 Bio in mobile transfers are anticipated in 2014 Over Up to TODAY Up to 13% of 2014 2015 75% of the 15% of formal planet has formal remittances access to a remittances mobile mobile mobile Mobile technology is disrupting Transferring Generating traditional USD 65 Bio USD 6.2 Bio models, which per annum in commissions rely on fixed infrastructure & agent networksSource: World Bank 2011, Juniper Research 2011, Berg Insightslide 8 | BICS confidential | 12 October 2012
  9. 9. Are we ready for mobilebased payments Mobile readiness index 1 Singapore 45,5 18 Columbia 32,4 2 Canada 42,0 19 Germany 31,6 3 United States 41,5 20 Thailand 31,8 4 Kenya 40,4 21 India 31,5 Key factors: 5 South Korea 39,7 22 Nigeria 31,3 • Consumer demand 39,5 31,2 6 Japan 23 France • Market infrastructure United Arab Emirates 37,5 Egypt 30,2 7 24 • Financial services 8 Saudi Arabia 37,5 25 Vietnam 30,1 37,5 20,1 • Regulatory 9 United Kingdom 26 South Africa 38,5 28,8 landscape 10 China 27 Turkey 11 Taiwan 38,1 28,5 • Digital commerce 28 Russia 12 Australia 36,3 29 Poland 27,9 enablement 13 Philippines 34,7 30 Mexico 27,7 14 Malaysia 34,3 31 Hungary 27,0 15 Hong Kong 33,7 32 Italy 25,5 16 Brazil 33,4 33 Indonesia 22,4 17 New Zealand 32,7 34 Argentina 24,0Source: MasterCard International – Mobile Payments Readiness Indexslide 9 | BICS confidential | 12 October 2012
  10. 10. The complexities of the ecosystem To move to a truly open ecosystem of tomorrow requires a coordinated effort by all participants involved MTOs Banks Regulators Receiving PSPs Cash-out agentsCash-in agents Sending PSPs Open money transfer ecosystem slide 10 | BICS confidential | 12 October 2012
  11. 11. From competitionto cooperation Moving from closed networks to interoperable ecosystems Yesterday Today Few dominant and Open Ecosystem Model competitive players • Proprietary networks • Interoperability between • Few dominant brands industry networks • No interoperability • Collaboration between banks, MNOs and MTOs to reach the receiverslide 11 | BICS confidential | 12 October 2012
  12. 12. From bilateral tohub modelBilateral models in ecosystems with hundreds of players across differing industries are simply not scalable Bilateral Model Hub Model • Separate commercials • Single commercial relationship • Multiple technical interfaces • Single technical interface • Many settlement counterparties • Single settlement counterpartyslide 12 | BICS confidential | 12 October 2012
  13. 13. Need for a HubStandardized integration, National/International connectivity Internet/Mobile Branches Banking Banks Utility ATMs Companies Value Added Services Other Value Added MNO 1 Hub MNO 2 Hub Services Cash-in Merchants /outMNO – Mobile Network OperatorMTO – Money Transfer Organisation AgentsPSP – Payment Service Provider slide 13 | BICS confidential | 12 October 2012
  14. 14. Introducing • Global hubbing service enabling P2P cross-border transfers & airtime, from/to various sources (mWallet, eWallet, bank account, cash-in/out agents…) • Open and neutral intermediary between various participants in the ecosystem: MNOs, MTOs, banks, PSPs… › gateway between mobile and financial industry • Single technical and commercial interface › one time setup to reach the world • Fully compatible with any m-Wallet system and bearer • Secured connectivity through BICS IP Exchange network or through IPSEC • Smooth and fast integration through published APIs • Regulatory compliancy Branches e-wallet Shops providers Internet/mobile Banks MNOs Distributors banking endorsed ATMs MTOs PSPs Other Agents hubs Merchantsslide 14 | BICS confidential | 12 October 2012
  15. 15. Beyond remittance Domestic interoperability will drive user uptake and revenue growth Larger Increased Growing Reach critical mass addressable number of transactions revenues and network effects! market ‘’ The mobile industry can learn from the introduction of SMS interoperability … … within seven months of interoperability being allowed there was a 350% increase in messaging traffic ’’ (Ovum, 2011)slide 15 | BICS confidential | 12 October 2012
  16. 16. The Qtel Remittanceservice Solving interoperability in practice Regulatory AML compliance monitoring Hub-to-Hub peering Remittance hubbingslide 16 | BICS confidential | 12 October 2012
  17. 17. The open network effect HomeSend’s current and anticipated coverage extends to over 24 countries UK Belgium EU • MvNO • PSP Netherlands Nepal • MvNO • iMTO’s • MNO’s • MTO Spain • MNO • MTO • MTO • Bank • MNO Liberia Canada • MNO • iMTO USA Russia • Banks • Bank Italy Qatar • MvNO • MNOs • BankMorocco Nigeria• MNO • MNO• Bank • Bank’s Ghana Malaysia • MNO • MTO • MVNO Kenya Indonesia • MNO • MNO Rwanda Pakistan • MNO • Bank China India • PSP Australia • Bank Philippines Bangladesh MTO • • MNOs Vietnam • MNO • MNOslide 17 | BICS confidential | 12 October 2012 • Bank
  18. 18. Conclusion• Take up micro-payments promising in developed markets• For emerging markets remittances are key• The market is fragmented and complex Terima• Solving complexity and Kasih ! interoperability is key• Your support is sought to widen the WW ecosystem via HomeSendslide 18 | BICS confidential | 12 October 2012
  19. 19. Questions ? Frédéric Schepens www.homesend.com frederic.schepens@bics.com www.bics.com +32 475 349401 www.pingping.bebics confidential | September 2012

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